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MARKET COMPETITION IN THEINTEREST OF CLIENTS

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DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS 3Date 07.01.2008 number 4 berzNIK

A New Year, a new step -BerzNIK

Happy New Year and Marry Christmas

The first working week in the new 2008 isstill in a sign of celebration atmosphere.More greetings, congratulations and wishesfor successful year... and less work. BerzNIKalso within the celebration spirit and in pacewith the printed media which turned out tobe a double edition… is looking back onwhat remarked the domestic capital market.

This is the fourth edition of BerzNIK - di-gital service for transmission and distribu-tion of selected information from thefinance-stock exchange domain publishedin the Macedonian printed media. I believemany of you had the opportunity to take alook at the Sunday`s index review, to regis-ter our activities, and perhaps to get infor-mation and take advantage of our services.Practically the same as the analytic weeklynewspaper tenderNIK, berzNIK as a special-ized provider of services updates on dailybasis all the news, events and informationwhich directly or indirectly are related to thestock exchange market.

While the others summarize and presentthe results and look back on the most inter-esting moments and events which had apositive or negative effect on the public dur-ing the 2007, berzNIK through the pilot edi-tion and the three printed weekly reviewspublished in December made an attempt topromote it`s purpose, the function and prior-ity of it`s service to the users. It remains onlyto remind you that we are keeping pace withthe new 2008 - a dynamic pace towards thebusiness stock exchange world, a special-ized segment which will continue to convey,process and explore the content in the fieldsof finance, banking, insurance, leasing,investment funds, stockholders trading. Thisincludes simply all the information, evalua-tions, analyses which reflect the capital mar-ket. The actual picture of all these events onthe Macedonian market will be given a final

touch by your opinions, views, principles,ways of operation, terms of agreement andpresentation, evaluations for which I believewill be part of your field of interest...

The door of berzNIK is always open foryour examinations, suggestions, ideas,comments, polemics, discussions… intro-duce yourself, regardless whether you rep-resent your individual, own opinion, the po-sition of the house or the company you pro-mote or work for. The knowledge is notenough unless you pass it on, present it orshare it with others. The positive experienceis the instigator of the development trends inthe surroundings, the challenge of being inthe center of the happenings, the challengeof being in a team who will elaborate andfurther explain the written and unwrittenrules of business behavior, and which arehowever initial triggers for certain concretesolutions… decisions for accession in themarket as direct or indirect participant…

The forth edition of berzNIK, to the inter-est of it`s readers, decided to convey part ofthe news which left a mark on certain seg-ments on the securities market within thelast year. We report part of the views andopinions, interviews that were given by thedirecting people of business and institution-al offices, funds and companies in the dailyand weekly media, giving on the other handvaluable, characteristic and detailed infor-mation which reflect the movements on themarket. Let their specialized views, opinionsand analyses become part of the polemicsin which we will place your views and expe-riences with the aim to address them to oursubscribers, who can become your clientsas well…

Until the next week!Makedonka Baldazarska

BerzNIK editor-in-chiefe-mail: [email protected]

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4 DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTSberzNIK number 4 Date 07.01.2008

WEEKLY REVIEW OF MACEDONIAN STOCK EXCHANGEperiod 01. - 04.01.2008 year

Turnover by market segments

Data on MBI-10 shares

Index MBI-10


Macedonian Stock Exchange matures, is thetitle of stock market analysis, which was con-veyed by Vecer. Macedonian capital marketmade real boom this year. If last stock marketyear was declared as the most successful in theten years long history of Macedonian StockExchange, then, this year is the cherry on topwhen it comes to successful operations. Lastyear turnover amounts 175 million euros, andonly in the first 11 month of this year it reached658 million euros.

Utrinski Vesnik in its stock market analysisascertains that domestic companies are moreand more open on the market, and MSE becomesmore and more attractive for legal and naturalentities. MSE becomes alternative market for cit-izens as well, because they begun to invest theirmoney instead keeping them in bank or under pil-low, they played with their money on the stockmarket and they played with success.

Who lost and who gained on MSE in thepassing year? Were there more winners or loserson Macedonian capital market? All experts agreethat the year end up in sobering of recent avid in-vestors. They are going to make their future deci-sions with clear heads.

In this year Macedonia made economic cutsfollowing European model, Vecer conveys. Thisespecially came to the fore in the sphere of taxpolicy. Flat taxes became challenge for changingof recent unfavorable attitude of foreign investorsfor Macedonia and our country was placed oninvestment maps of world and European giants…Macedonia, as a country that was jammed for tenyears due to painful transition, in the passing yearbegun to outbrave largest European economiessince Prime Minister Nikola Gruevski`s cabinetdecided to introduce flat taxes and makeMacedonia attractive country for investing, firstEuropeans chided us, and now Macedonia is anexample how to attract foreign investors acrosslower taxes.

According to Sterjo Nakov, the passing yearis one of the most successful.

-The passing year is one of the most suc-cessful, but we can always do more than we havemade so far. Our considerations about economyshould be changed in the future, and cooperationwith businessmen should be improved, Nakov sa-id. Businessman Risto Gusterov, who is one ofthe main lobbyists for the entry of American giantJohnson Controls in Macedonia, says that busi-ness climate in Macedonia improves and currentcabinet is on the right way to make the countryattractive business destination.

Vecer pays attention on paradox aroundVeles smeltery. While the Government acrossMinistry of Environment puts all efforts to dislo-cate hundreds tones of sulphur acid, which wastime bomb for Veles and river Vardar, largesttrustees - Stopanska Banka, Komercijalna Banka,Fresped, Makpetrol and Veteks from Veles soldtheir claim to representatives of Swiss groupMineko, which is supported by former officials inMHK Zletovo, Milan Aksentijevic, Cedo Petrovand Zanko Cado. German Berlingen AG is also infor buying of big part of trustees` claim.

Vecer in its last 2007 edition shows newspa-per report about Macedonian wine producers whoare proud of their work. Macedonian proud is inthe wine. Ambassadors, musicians, politicians,who ever tasted Macedonian wine speak aboutits quality and specifics with appetite. Serving ofwine Aleksandar produced by winery Bovin on thewedding ceremony of Dutch Prince WilliamAlexander in February 2002 is the greatestachievement. The same wine was that dayserved in all Dutch Embassies across Europe.Famous music star Brian Ferry tasted TikvesVranec before his concert in Skopje…Let us hopethat the trend of placement of Macedonian wineson tables of celebrities will continue in the next2008…

1. SHORT REVIEW OF EVENTS

1. THE GOVERNMENT TO USE THE SERVICES OF KOSMOFON (***)2. MACEDONIAN STOCK EXCHANGE MATURES (**)

31.12.2007-01.01.2008 MONDAY-TUESDAY

DNEVNIK

p.11 CHEERS WITH A MACEDONIANWINE ON ROYAL WEEDING

UTRINSKI VESNIK

p.1 THE STOCK EXCHANGE HASSOBERED UP THE INVESTORS

p.2 THE GOVERNMENT TO USE THESERVICES OF KOSMOFON

p.11 THE STOCK EXCHANGE HASSOBERED UP THE INVESTORS

VECER

p.1 THE GOVERNMENT WILL USECOSMOFON FOR ITS PHONES

p.8 CEDO PETROV BUYS THESMELTRY?

p.8 THE GOVERNMENT WILL USECOSMOFON FOR ITS PHONES

p.38 ECONOMIC CUTS BY EUROPEANPATTERN

p.39 MACEDONIAN STOCK EXCHANGEMATURES

2. TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS

Publishing: INTERNACIONAL NIK AD - SkopjeMedia library and digital archiveEditors office: berzNIKAddress: Square MAKEDONIJA bb, p.box 882 Skopje, 1000,

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STOCK EXCHANGE REVIEW OF EVENTS IN THEPRINT MEDIA berzNIK

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STOCK EXCHANGE REVIEW OF EVENTS IN THEPRINT MEDIA berzNIKNumber: 4Date: 07.01.2008

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FRONT PAGE PHOTO:

Photo: Robert Spasovski

Editorial staff of berzNIKInternet distributive system:www.interNIK.com.mkEditor: Makedonka BaldazarskaDTP: Tatijana TrpkovskaEditorial staff:News Evaluator: Anita Bashoska[operators]: Arslan Skoro, Zoran Stamatovski, Martin Arsovski,Gorge Redzik, Toni Arsovski i Darko Tripunovski * [translators]: translator's manager Senka Mihajlovska, AngelinaFilipovska, Slobodan Trajkovski, Aleksandar Stamenkovski, AnetaMenoska, Filip Koviloski, Darko IvanovskiFotoreporter: Robert Spasovski

Marketing, distribucija i proda`ba: INTERNACIONAL NIK AD - Skopje

I M P R E S S U M

C O N T E N T S

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . 3

WEEKLY REVIEW OF THE MACEDONIAN STOCKEXCHANGE… . . . . . . . . . . . . . . . . . . . . . . . . . . . ...4

berzNIK, MONDAY, TUESDAY, WEDNESDAY…..5-6

INTERVIEW - IVAN STERIEV, DIRECTOR OFMACEDONIAN STOCK EXCHANGE . . . . . . .……7

MACEDONIAN CAPITAL MARKET - SUBJECT TOMANY NEW YEAR’S PRINT MEDIA . . . . .……8-9

REALIGNMENTS IN THE BANKING SECTOR...10-11

IMPORTANT DECISIONS OF THE MARKETREGULATOR 12-13

berzNIK, THURSDAY, FRIDAY, SATURDAY,WEEKLYMAGAZINES … . . . . . . . . . . . . . . . . . . . . . . ...14-17

SECURITIES COMMISSION . . . . . . . . . . . . . .…..18

CAPITAL MARKET’S NEWS.........................19




1. THE GOVERNMENT WILL PAY 40 MILLION US DOLLARS TO OKTA (***)2. MILESTONE DEFINITELY BECAME OWNER OF KIB-KUMANOVO (*)

02.01.2008 WEDNESDAY

On the last day of the year 2007, the Govern-ment discharged its debt with OKTA after the seven-year dispute. This is the news that all daily printedmedia write about on the first working day of theNew Year 2008. Practically, the Government hastransferred 40 million dollars from the 2007 Budgetto the OKTA Refinery. In this way is settled part ofthe damage, which the International Arbitrary Courtin Paris has adjudicated to Macedonia due to non-compliance with the OKTA purchase agreementfrom 1999. The total debt of Macedonia towards therefinery amounts 94 million dollars, including the 53million dollars principal debt, in accordance with theverdict of the Parisian Arbitrary Court, 16 milliondollars interests, as well as 25 million dollars newclaims from 2004 until today on the basis of the pur-chase agreement. According to the GovernmentSpokesperson Bocevski, OKTA has agreed toaccept 40 million dollars; the rest of 54 million dol-lars is written off debt.

Among the few stock exchange information intoday`s printed media distinguishes the news fromUtrinski vesnik regarding KIB Kumanovo, whosenew owner is definitely Milestone from Iceland. TheBank has announced that the offer of the Icelanderssubmitted for purchase of the shares of the formershareholders is proclaimed for successful withwhich it becomes owner of 75.9 percents of KIB Ku-manovo shares. The Macedonian Stock Exchangewas also informed about this last week.

This means that another Macedonian bank hasgot foreign owner during 2007. Earlier, foreign ban-king brands have entered into Ohridska banka,which was bought by the French Societe Generale,while Alfa Finance Holding from Bulgaria has bou-ght our International Private Bank, which is going tobe named Kapital banka. In the forthcoming period,very soon, it is expected the transactions for sale ofSileks and Postenska banka to be realized as well,which are going to be part of the Bulgarian Central

Cooperative Bank.Dnevnik informs that the Stock Exchanges of

Banja Luka and Sarajevo have also joined the regi-onal partnership project, which in the penultimateweek of December 2007 was signed by the headsof the Stock Exchanges of Ljubljana, Zagreb, Bel-grade, and Skopje. The two Stock Exchanges fromMontenegro also obtained invitation for joining thisMemorandum for Cooperation.

Dnevnik also conveys the message of the He-ad of Skopski Pazar, Saso Davitkovski, who saysthat they do not plan to sell the company. Namely,the Management Board President Davitkovski con-siders continuing the family vision for company`sdevelopment, and looks for the challenge in the ear-lier successful working and competition impact. Hewants to prove that it is not necessary to sell the do-mestic business to foreigners, but it could be deve-loped with own resources as well.

DNEVNIKp.3 THE GOVERNMENT WILL PAY 40 MILLION US DOLLARS TO

OKTAp.7 BOSNIAN STOCK EXCHANGES JOIN THE REGIONAL PRO-

JECTp.9 WE ARE NOT CONSIDERING SELLING THE COMPANYp.13 OKTA STRIKES CUTTINGSp.14 HEATING OIL WITH 1% SULFUR CANNOT BE PROCURED

UTRINSKI VESNIKp.1 MACEDONIAN CITIZENS PAY PENALTIES OF 40 MILLION

DOLLARS FOR OKTAp.2 MACEDONIAN CITIZENS PAY PENALTIES OF 40 MILLION

DOLLARS FOR OKTAp.7 MILESTONE DEFINITELY BECAME OWNER OF KIB-

KUMANOVO

VECERp.4 THE STATE CLEARS DEBT WITH OKTA

VESTp.5 REGULATIONS FOR ECOFUELS POSTPONED FOR 2010

NOVA MAKEDONIJAp.1 REFINERY AGREES ON $40 MILLIONp.4 REFINERY AGREES ON $40 MILLION


INTERVIEW- IVAN STERIEV, DIRECTOR OF MACEDONIAN STOCK EXCHANGE

The stock exchanges of the region asmuch as they are strong now, they will not beable to exist alone on a long-term. The solu-tion lies in the regional cooperation andattracting investors outside the region.Therefore with the stock exchanges fromLjubljana, Belgrade, Zagreb and Skopje wedecided to establish mutual cooperation inorder to promote the region as a whole in theinternational investment public. It is plannedwe have mutual road show few times a yearand to present together our markets and com-panies in the big international financial cen-ters. This way we will be more interesting forthe big international funds and investors wewant to attract to the region- says in the inter-view for Kapital Ivan Steriev, the head execu-tive director of Macedonian Stock Exchange.

If one analyzes the events on the StockExchange the past few years, can one makesome correlation to what is happening to us inthe real economy?

- Often enough there were questions howwas it possible the share prices on the StockExchange to go up and yet the general situation ineconomy not to be that positive.

The Stock Exchange is always an indicator ofthe expectations and perceptions of the investorswho buy and sell shares of certain companies, asto what happens and will happen in the economyand those companies. The correlation betweenthe movements in economy and the StockExchange is closer if on the stock exchange arelisted and traded companies that have significantrole in the growth of the overall economy. This isthe case with us, but not completely since thereare many big companies which out of differentreasons are not present on the Stock Exchange. Itis obvious that what is happening on the StockExchange is under the influence of the percep-tions and expectations, which can be objective,but also over-optimistic or over-pessimistic.

For example, there is this syntagma going onabout the American capital market as to how oftenthe stock markets predict what will happen withthe national economy. So it is said that the move-ments on Wall Street have predicted the lastseven recessions out of the total four that really

happened. What I want to say is that there cannotbe a 100% correlation between what happens onthe stock exchange and the economy.

On the other hand, if you analyze the resultsof the listed companies, actually of those whichthe past three years make the biggest turnover onthe Macedonian Stock Exchange, you can seethat they have constant trend of improving theirresults. Meaning, in a good part, seen through thefundamental analysis, the movements of theshare prices are upheld with better performancesby the companies. This raises many other ques-tions. Is the appreciation of shares of certain com-pany justified by the company's financial results?Do the perceptions on the larger potential in thisor that sector in Macedonia or the region approveor not such price appreciation? These are delicatequestions and no one knows the right answerbecause it is always about perceptions andexpectations.

In cases when the regional funds are themain players, how realistic is the risk of acrash happening on the market if they with-draw? How big is the connection of theMacedonian capital market with the regionalcapital markets?

- It is a fact that there is nig connectionbetween what happens in Macedonia and thehappenings in the region. I would not comment onthe risk, because the fact I already mentioned is aprice of the Macedonian economy's opening,which is usually good. What is certain is that weare no longer autarchic as a market, there are nomore statements in the media that we wereimmune to everything that goes on in the worldand the region. We are now connected to the region and I'm sure that we will be under the influ-ence of the wider international movements evenmore. For a small and open economy such asMacedonia, this is inevitable.

How successful are the Macedonian StockExchange and Macedonian capital market ifanalyzed the turnover, the capitalization, theliquidation and what's going on in the otherstock exchanges in the region?

- According to the realized turnover theMacedonian Stock Exchange is the fourth stockexchange in the region, by standard. Taking intoconsideration the size of the country and thenational economy, I think this is completely normalreflection of the realistic situations.

As to the market capitalization, according tothe data we have, we are the fourth stock exchan-ge in the region in this area too. Nevertheless, ifthe capitalization is seen as a percent of the GDP,then there is still room for development. In thedeveloped stock exchanges the capitalization is100% from the GDP. When the capitalization haslow share in the GDP, there is presumption thatthere is lot of room for growth as a result to thepotential of more new companies to be listed, orthat there is still room for growth of the alreadylisted companies.

Why there are no new companies listing

on the Stock Exchange? Why there are no newstock emissions from the listed companies?

- In spite the three-year share price apprecia-tion, we did not have more significant new stockemission. This can do companies which are notjoint-stock companies at all and which are notproduct of privatization of former state enterpriseswith assistance of IPO, but also current joint-stockcompanies with the help of new emission in orderto collect extra funds.

Obviously this model of financing is not closeas yet to both groups of companies. As possiblereasons for this are pointed the ownership dilu-tion, new shareholders entering the companyactually. However, I have perception that thingswill change pretty soon. The significance of whatthe capital market means is getting bigger thanthree years ago and it becomes clear that theinvestors are hungry for new financial instru-ments. This is proof for the companies that therewill sure be demand for well done emission by asuccessful company.

Now that the institutional investors also start-ed working, which Macedonia was behind inunlike the region, there are conditions the stockemissions to be realized more safely. There isinterest of listing new companies, there are evenpreliminary talks, but the final decision is up to thecompanies. It is their legitimate right to decide ifthey want to provide extra financial funds throughthe market and let new owners in the company.

How risky is it to invest on theMacedonian Stock Exchange? Does the mar-ket have capacity of recognizing and penaliz-ing the speculators, especially after the casewith Mavrovo?

- Usually, investing in securities has certaindose of risk. And that is why the yields theinvestors are expecting from the shares are big-ger than the yields they get from the state securi-ties or the bank deposits. What happened withMavrovo is a peculiar crash on the market.Nevertheless, such crashes have happenedbefore and will be happening in all markets forsecurities. The job of the Stock Exchange and theCommission on Securities is to try establishingsystem that will minimize the possibilities for thiskind of events. When an event like this occurs itmeans it is time for reforms. The rules for listingon the Stock Exchange are good, but there surlyis room for some things to be more specified inorder to reduce the possibility of problematic situ-ation like this occurring again.

We must admit there is great progress in thepart of publishing the companies' financial resultsthan few years ago when no one wanted to pub-lish them and when there were very little tradingon the Stock Exchange. The Macedonian StockExchange had its part in the change of the overallambient in a big way. There has to be improve-ments in the sphere of publishing the non-finan-cial price sensitive information, but this will taketime.

WE HAVE TO ATTRACT NEW FOREIGN INVESTORS


MACEDONIAN CAPITAL MARKET- SUBJECT

THE STOCK EXCHANGESOBERS THE INVESTORS UP

Assessment on the last year's working of theMacedonian Stock Exchange also reportedVecer through its own views in the new year'sissue, in which less or more were generallyreflected the key events that marked the work ofMacedonian capital market

The Macedonian capital market made realboom this year. If last stock exchange year wasdeclared for most successful in the ten-year work-ing of Macedonian Stock Exchange, then this yearis the cream of the successful working. Last yearthe turnover was 175 million euros and, this yearin the first 11 months alone the turnover reachedover 658 million euros.

The domestic companies are out on the mar-ket more everyday, and the stock exchangebecomes more attractive both for the legal andphysical entities. The citizens see the stockexchange as an alternative market because,instead of investing their free money in the banksor keeping it under the pillow, they played with iton the stock exchange and they were doing thisvery successfully.

What's topic this year is that the participationof foreigners started to increase in the companies'shareholders structure. On the capital market theforeigners participated with 51.62 percent in buy-ing sha res and with 18.76 percent in sellingshares.

The trend of foreign investment funds fromCroatia and Slovenia, foreign banks and brokerhouses investing on the Macedonian capital mar-ket continues this year too…Nevertheless, theintensity of investing on the Stock Exchange has

drastically fallen the past two months. The stockexchange crisis that covered the Balkans did notpass our stock exchange. The explanation of thestock exchange analysts is that the political condi-tion in the region affects the market directly.December is the weakest stock exchange monthbecause some of the stock exchange tradersstarted to celebrate the New Year holidays early.

New rules for listing were introduced on theStock Exchange the passing year. Consequently,on the official market one could trade with theshares of companies that have one million market

capitalization, 100 shareholders and 15 percentfree capital. In February four companies Beton,Invest and Komercijalna Banka and Toplifikacijaformed the segment super listing for the first time.In May was introduced new rule for trading, bywhich the prices of the companies' shares couldnot vary from 1,0 percent on daily bases. This sta-bilized the stock exchanged drastically.

To attract foreign investments, this year theMacedonian Stock Exchange became partnerwith the Belgrade, Croatian and Slovenian stockexchange.

MACEDONIAN STOCKEXCHANGE MADE A REAL

BOOM

The small investors, unfortunately,remained unprotected and many of them madecapital losses because they were investingblindly, is the conclusion of the analyses UtrinskiVesnik reported…

Who lost and who gained with the Macedoni-an Stock Exchange the year that's behind us?Were there more profit-makers or losers on theMacedonian capital market? Was the StockExchange place where certain investors lost theirnerves and emptied their pockets? Were the citi-zens protected enough, and even those less

ment fund Ilirika Fund Management explains thatfrom the beginning of 2007 the Macedonian StockExchange had the biggest growth of all stockexchanges in the region. "It was a place where noinvestor lost. Everybody gained", says Manev. Hepoints to the places the ones who made a mistakeshould be looked in. "Where there is no profes-sional management and thorough analyses theinvestors make wring decisions. And the smallinvestors, unfortunately, remained unprotectedand many of them made capital losses".

According to him however, the decision isalways at burden of the investor.

smart and small investors who did not know toread the hidden messages in the companies'financial reports and, nevertheless decided to trytheir luck on the Stock Exchange? ...People famili-ar with this matter all agree on one thing- that wefinish this year in the sign of sobering the prettywarmed up investors. In future they will pass theirdecisions with cool heads. The news is that fromnow on they will not have to do this alone, but withthe help of the first licensed investment consult-ants who will advise the citizens where it would bemost affordable for them to invest.

…Aleksandar Manev, the director of invest-


TO MANY NEW YEAR'S PRINT MEDIAMOST TRADED THE SHARES OF

GRANIT, ALKALOID, MAKSTILAND KOMERCIJALNA

The shares of the companies that composethe Macedonian stock exchange index MBI-10,without an exception even in the weeks when themarket had the biggest corrections, have alwayskept the investors' attention as one of the mostliquid shares on the market, published Biznis

The last quartile of 2007 big correction ha-ppened on the Macedonian capital market.Although this trend was following the stockexchanges in the region as well, and even wider,big part of the stock exchange analysts put thiscondition down to the instable political surround-ing. Fact because of which the foreign investorsbypassed us, but also a fact which, on the otherhand, brought hesitation among the domesticinvestors producing anemia on the Macedoniancapital market. The intensity of trading has signif-icantly decreased causing drastic fall, mostly tothe daily turnover and enormous index oscilla-tions. Nevertheless, in spite of the trading withsmall amounts of shares, there are always sharesthat are most traded in certain trading day, weekor month, and which more or less affect the move-ment of the other stock exchange parameters.Without an exception even in the weeks when themarket underwent the biggest corrections, mosttraded were the shares of the companies thatcompose the Macedonian stock exchange indexMBI-10.

…According to the monthly lists of tradingpublished on the Macedonian stock exchange,the first month of 2007 most traded were the

shares of construction company Mavrovo with 646transactions. Second by the number of realizedtransactions is company EMO from Ohrid with488 and, third are the shares of Granit with 400realized transactions.

The first month of the year that ended,according to the turnover's structure, the biggestparticipation had the trading with block-transac-tions which covered as many as 84 percent of thetotal turnover of 4.22 milliards denars. Theturnover from the Official market participates with14.36 percent and the Regular market with 1.64percent in the total turnover.

Most traded shares in February are theshares of Granit. With them were made 858 trans-actions, then 581 transaction with the shares ofKomercijalna Banka and 532 of Alkaloid.

Realized according to the structure of partici-pation in the turnover, now the Official market pre-vails with 65.55 percent in the total turnover of1.55 milliard denars. The participation of blockshas significantly reduced coming down to 20.28percent…

In March dominant participation in the tradinghave the shares of Makstil with 1,156 transactionsand Granit with 1,096… Makstil with 1622 trans-actions and Komercijalna Banka with 1,050 aredominant in the trading in April, and Alkaloid andGranit join the group of most traded shares thismonth.

The first two companies remain the most trad-ed in May as well. The shares of all four compa-nies stay the most traded in June as well but withhalf the transactions realized. And almost all in the

range between 573 and 502 transactions. In Julythe trend of most traded shares with big amountsof shares is significantly declining, although thisgroup is again composed by the shares ofKomercijalna, Alkaloid and Granit.

In August Makstil with 1,011 and Alkaloid with1,020 transactions return in the focus of mosttraded shares and Granit with 882 transactions.As most traded shares in September appear theshares of FZC-11 Oktomvri with 1,183 transac-tions and again most traded are the shares ofMBI-10, Granit and Makstil. The same is the struc-ture of most traded shares in October as well… InNovember there are no bigger oscillations at leastrelating to this market segment. In game remainthe same shares of Alkaloid with 707 transactions,Granit with 653 and Makstil with 622 transactions.

Seen by the market's structure in Novemberthere is again domination of the block transactionswith 53.16 percent in the total turnover on themarket of 3.69 milliard denars. If we summarizethe results on yearly bases then with no exceptionthe group of most traded shares is composed bythe shares of Granit, Makstil, Komercijalna Bankaand Alkaloid.

August 31 of this year the Macedonian stockexchange index has reached the highest level,after what followed the biggest price correction.

"By the end of August the investors were gen-erally managing making capital profit-smaller orbigger, in every share they would invest in. At thebeginning of September though, the Macedonianmarket registered price depreciation caused littleby the global trends and little by the open issues-will Macedonia join NATO, will it receive date fornegotiations with EU and how will the Kosovoissue be solved", says Krste Sajnoski, investmentconsultant.

Nevertheless, according to him, the advan-tage of the domestic market is that it is still under-rated comparing to regional ones and the foreigninvestors find it attractive.

…Ivan Steriev, the director of MacedonianStock Exchange, explains that it is crucial that theinvestors make their decisions for investing on thebases of thorough analyses. "From the perspec-

and the investors. The Commission on Securitiesencourages the shareholders who think theirrights have been violated to report it with theCommission", says the president of theCommission, Marina Nakeva-Kavrakova.

tive of the opportunity for gains and losses on theStock Exchange this year, we cannot escape thenumbers. And they speak that this is the third yearin a row of significant growth of the Macedonianstock exchange index MBI-10. In 2007 this indexwill make growth on yearly bases of nearly 100percent", explains the head of the StockExchange…According to him, the key differencecomparing to last year is that this year there wasserious amplitude down. "It was peculiar test forthe investors that in a certain period the marketcan turn against them…

…The Commission on Securities says thatthe number of complaints by the shareholders iscontinually getting reduced, which shows thatthere is an order established on the capital mar-ket. The numbers show that if in 2003 there were256 requests for protection of shareholders rights,now including November 2007 there are 99. "Ourgoal is to protect the rights of the shareholders


Last year, direct investments in the amount of 77million euros entered the banking sector: purchase ofshares-46 million euros, 4 million euros as reinvestedprofit, and 27.4 million euros for further capitalizationand subordinated deposit.

The year which passed brought a bigger sta-bility to the financial system, but without anychanges of the well positioned banking sys-

tem which is dominant, especially with a high con-centration of the three major banks: StopanskaBanka, Komercijalna Banka and Tutunska Banka.According to the statistical data of the NationalBank, the year 2007 goes down in the history ofthe banking sector for best results. The prognosesof the bankers and the experts indicate that theMacedonian banking sector will have a differentlook in the forthcoming two years. The marketstarted swelling when the French company"Societe Generale" entered. The bankers feel thatthere will be a diversification, and the middlebanks will have to either specialize themselves inorder to get a small part of the market or theywould be taken over by the major banks, which isalready happening and very few middle banksremained domestic. The liquidation ofMakedonska Banka, which caused harsh reac-tions among the public, will remain as a most sig-

nificant mark of the banking year 2007. TheGovernor of the Macedonian National Bank, PetarGoshev, admits that the three major banks in thecountry are still dominant on the domestic bankingmarket and that they own 65% of it. But, the com-petition in the banking sector is growing.According to him, the numbers indicate that thecountry's banking sector is improving. The com-petition is becoming healthier, especially after theentering of the foreign investments, like a compa-ny from the caliber of "Societe Generale". "Theentrance of "Societe Generale" cannot immedi-ately make dramatic changes. But, with these newentries of foreign investors in the banking sector,next year will definitely be a year of additional leapof the competitiveness in the banking sector", theGovernor said.

The Bulgarian capital is becoming significant

This year, direct investments in the amount of77 million euros entered the banking sector: pur-chase of shares-46 million euros, 4 million eurosas reinvested profit, and 27.4 million euros for fur-ther capitalization and subordinated deposit.

The ownership structure in the banks sufferedhuge realignments at the end of this year. Therecent acquisitions of three banks from the middle

banks' group, like Postenska Banka, SileksBanka, and International Private Bank, whichwere taken over by Bulgarian banks, left theirmark. Herewith, the participation of the Bulgariancapital in the Macedonian banking sector isbecoming significant. If recently, the presence ofthe Bulgarian capital in the banks was only recog-nizable by Universal Investment Bank (Uni Bank),now it has its competition in Central CooperativeBank and Alfa Finance Holding (Capital Bank).

At the beginning of December this year, theGovernor of the National Bank of the Republic ofMacedonia brought decisions, with which, previ-ous consent to Central Cooperative Bank JSCSofia, Republic of Bulgaria, for acquiring of66.67% of the total number of shares ofPostenska Banka and 100% of the total number ofvoting shares of Sileks Banka, with an order thatthe transactions for the acquisitions of the sharesshould be made within a period of 180 days fromthe day of the receiving of the Governor's con-sent.

Central Cooperative Bank is working basedon a permit for performing of banking activities inthe Republic of Bulgaria and abroad, issued bythe Bulgarian National Bank. It is a member of theInternational Cooperative Banking Association,and with the admission to the European Union, it

also becomes a member of the EuropeanAssociation of Co-operative Banks. The bank isone of the most dynamic banks in Bulgaria witha 30% increase from the average developmentof the Bulgarian banking system. They alsoagree with the findings of the other Bulgarianinvestors in the banking industry thatMacedonia is a country with a market, whichhas an enormous potential for developing of thefinancial markets.

Alfa Finance Holding (Capital Bank) is aleading financial and industrial group inBulgaria. Meanwhile, the bank is renamed inCapital Bank. According to the representativesof the bank's management, Macedonia is cho-sen for investing because of the possibilities ofthe Macedonian financial market and the seri-ous potential for developing of the Macedonianeconomy. Alfa Finance Holding entersMacedonia with its competences in the field ofthe corporative finances and capital markets,the management of the financial assets and thereal estate. According to the announcements,the initial objective of the new shareholder is toengage in increasing of the capital within a short

REALIGNMENTS IN THE BANKING SECTOR

THE MACEDONIAN BANKS UNDERTHE MAGNIFYING GLASS OF THE

FOREIGN INVESTORSThe oownership sstructure iin tthe bbanks ssuffered hhuge rrealignments aat tthe eend oof tthis yyear. TThe rrecent aacquisitions oof tthree bbanks ffrom tthe mmiddle bbanks'

group, llike PPostenska BBanka, SSileks BBanka, aand IInternational PPrivate BBank, wwhich wwere ttaken oover bby BBulgarian bbanks, lleft ttheir mmark. TThis iis aan aassessmentfrom tthe tthorough aanalysis oof tthe bbanking ssector iin MMacedonia, ppublished bby tthe nnewspaper ""Biznis", aaccording tto wwhich, tthe ddominant oownership oof tthedomestic iinvestors iin tthis ccountry's bbanks hhas ssignificantly ddecreased…


period of time. The announcements for new kindsof credits, developing of the ATM network, takinga leading position in the field of the investmentbanking and taking a leading position in the pay-ment card activities are a part of the bank's strat-egy. Yet, the new players should take the compe-tition which comes from the direction of Uni Bankseriously, because Uni Bank holds the leadingposition in the payment card activities and theATM network in this country, and it is also consid-ered as a bank which is focused especially on thepopulation with a wide spectrum of services,which are meant for various needs of the clients.According to the recent data from the CentralSecurities Depositary from 1st of December 2007regarding the shareholders who own over 5%shares, shareholders in Uni Bank are "GerasCunev trgovija" with 51.47% of the preferencecumulative shares, TTK Bank-Skopje owns42.62% of the preference cumulative shares, andthe shareholders Ceko Todorov Minev and IvajloDimitrov Mutafciev each own 37.51% of the ordi-nary shares.

Foreign capital from Greece and Sloveniadominant in the domestic banks

According to the recent statisticaldata from the National Bank for the par-ticipation of the foreign capital in thebanking system during the first half of2007, the increase of the participation ofthe foreign capital in the total capital ofthe banks in Macedonia continues. Thisincrease was present on a level of sepa-rate groups of banks and in the bankingsystem as a whole. Therefore, on 30th ofJune 2007, the participation of the for-eign capital in the total shareholder cap-ital of the banking system in the Republicof Macedonia amounted to 63%, whichrepresents an increase of 6.9% in com-parison with the end of 2006. On a levelof separate groups of banks, the biggestincrease of the participation of the for-eign capital in the total capital was regis-

tered in the middle banks' group, which ismostly a result of the acquisition of theOhrid Bank by "Societe Generale". On 30thof June 2007, the foreign capital was pres-ent in 17 banks, and its participation in thesingle banks was between 1% and 100% infour banks. As a result of these activities,the increase of the participation of the for-eign shareholders in the banks and in thetotal capital of the banking system contin-ued in the first half of 2007. According tothese data, the biggest foreign investors inthe banking system come from these twoEU member states-Greece and Slovenia.The investors from these two countries areowners of more than half of the capital ofthe banks, which are in dominant foreignownership, which is mostly due to the factthat two of the three major banks are indominant possession of banking groupsfrom these two countries. In the first half of2007, the Bulgarian capital participated inthe banking system with 3.36%, but withtheir participation significantly increasedwith the recent acquisitions. The questionwhether the example of the Bulgarianinvestors in the banking industry will be fol-

lowed by the other regional banking brandsremains open, and, according to the unofficialinformation for interest of Serbian and Slovenianbanks, which want to enter in our banks, itshould be a reality.

Dominant domestic owners

After the sale of Postenska Banka andSileks Banka to the Bulgarian CentralCooperative Bank, the enter of the Icelandiccompany "Milestone" in Komercijalno-investi-ciska banka-Kumanovo, as well as the recentsale of Ohrid Bank to the French company"Societe Generale", there are few banks in thiscountry where domestic physical and legal enti-ties are dominant owners.

Stopanska Banka-Bitola, TTK Bank,Komercijalna Banka and Invest Banka arebanks which dominant owners are domesticshareholders. According to the CentralSecurities Depositary's record of owners whoowned at least 5% of the shares of KomercijalnaBanka in December 2007, the dominant share-holder is the firm Provino with 16.9% of theshares. Even 40.6% of the shares of TTK Bankare in possession of the wool industrial complex

Todor Ciprovski-Merdzan, and theagricultural industrial complex Pela-gonija owns 21% of the shares of Sto-panska Banka-Bitola. Invest Bankahas the most divided ownership struc-ture and several domestic legal andphysical entities are owners of over5% of the shares of the bank.

Yet, regarding the fact that theEuropean Bank for Reconstructionand Development and several foreignfunds appear as bigger shareholdersamong them, as well as that for cer-tain banks, like Komercijalna Bankaand Stopanska Banka-Bitola, it is con-stantly announced that the foreignerswill completely take over the Mace-donian banking sector within a year ortwo.

The analysis of the ownershipstructure indicates that with the realization of thetransaction for acquisition of Postenska Banka,Sileks Banka and KIB, 12 from 18 banks, whichare currently working in Macedonia, will be in adominant possession of foreign shareholders.Representatives of the national bank informedthat until June 2007, even 63% of the banks` cap-ital was in the possession of foreign shareholders.At the beginning of the 90ties, the foreigners hadonly 20% of the ownership structure of the banks.It is interesting that after the announcements foramending of the regulative in this sector and thepassing of the new Law on Banks, fourMacedonian banks were sold in a period of oneyear. The experts say that this is not unexpected,because it is a matter of one of the most profitablesectors in Macedonia. Proof for that is the fact thatin August this year, the banks approved new cred-its in the amount of 660 million euros to the non-financial sector, which is an increase of 36.3% incomparison with August last year.Representatives of the National Bank of theRepublic of Macedonia estimated that, next year,the banks will have an opportunity to give creditsfrom 800 to 900 million euros to the private sector.


…At a session held on 16.03.2007 theSecurities Commission issued a license toSociete Generale SA Paris, Republic of France togive a purchasing offer for theregular shares issued byOhridska Banka AD Ohrid.

The Securities Commissionof the Republic of Macedonia, atthe seventy-eight session held on23.04.2007 reached a decision,which determines successful theoffer for purchasing regular sha-res issued by Ohridska Banka ADOhrid, given by Societe Gene-rale(Societe Generale, SA).

Societe Generale (SocieteGenerale, SA) acquired 166,022regular shares, which represent aportion of 51.47% from the totalmember of voting shares fromOhridska Banka AD Ohrid. Accor-ding to the legal regulations, theFrench Group Societe Gene-rale(Societe Generale, SA) noti-fied the Securities Commission that the purchas-ing offer of 322,549 regular shares was acceptedby a total of 297 regular shareholders , who sub-mitted statements for a total of 166,022 regularshares issued by Ohridska Banka AD Ohrid andthat the purchasing offer was realized successful-ly. The purchase of the securities was executed ata price of 8,157.96 denars per share.

On the basis of the report regarding the out-come of the offer for purchasing and after thecomplete establishing of the actual state, accord-ing to Article 43 of the Law on Taking Over JointStock Companies, the Securities Commissionreached the decision that the offer was success-ful.

The Securities Commission considers thatthe entering of the worldwide-recognized brandSociete Generale in Ohridska Banka AD Ohrid isexpected to expand the offer of high quality prod-ucts and services on the Macedonian bankingmarket and increase the competition, which is inthe interest of the clients.

… In addition, it was pointed out that it is amatter of a brand, which is present in 80 countriesacross the world, and is one of the leading banksin Europe. From the countries in the region it hasits subsidiaries in Slovenia, Serbia, Bulgaria,Montenegro, Romania and in Greece. This world-wide-recognized bank employees 120,000 peo-ple. They concluded that the entering of a foreigninvestor like Societe Generale SA is needed for

the Republic of Macedonia, and is in interest ofthe citizens and companies.

… Societe purchased the majority portion of

over 51% of the shares of Ohridska Banka at thebegging of last year for about 45 million euros.

***The Securities Commission issued a license

for Milestone ehf., Reykjavik, Iceland to be able togive a purchase offer for the regular shares issuedby Commercial Investment Bank JSC Kumanovo.The offer refers to 128,655 regular shares, andwould be considered successful if Milestone ehf.,Reykjavik, Iceland purchases 67% from the total

number of regular shares to which the offer refersto. The bidder obliges to purchase the securitiesat the price of 2,740 denars per share. The

Securities Commissionobliged Milestone ehf.,Reykjavik, Iceland tosubmit a proof that thedeadline at which thebank guarantee isissued was extendeddue to harmonizationwith the Law on TakingOver Joint StockCompanies. This is thesecond offer for pur-chasing a bank thisyear, after the success-ful takeover of OhridskaBanka AD Ohrid bySociete Generale SAParis.

… The Commissi-on on Securities deter-mined by a decisionthat the takeover of Commercial Investment

Bank JSC Kumanovo by Milestone ehf.,Reykjavik, Iceland is successful. Milestone ehf.,Reykjavik, Iceland acquired 97,647 regularshares which provide a portion of 75.9% from thevoting shares issued by Commercial InvestmentBank JSC Kumanovo.

***In November the Securities Commission

granted the fourth share issue to the insuranceshareholding company Sava Tabak - Skopje. It is

IMPORTANT DECISIONS OF THE MARKET REGULATOR

MARKET COMPETITION IN THEINTEREST OF CLIENTS

While regulating the capital market, in 2007 the Securities Commission made a lot of decisions for new share issues, high vol-umes of share buy backs from certain companies, takeovers of other companies, it also pronounced a number of measures for tem-porary trading bans, and exclusion from the market… and many more, however we are going to mention, or if you wish we are goingto pay attention to, those which were positive, contributed to the stabilization of the Macedonian capital market, and influenced thestrengthening of the security of the clients who participate on the market…

PRIVATE INVESTMENT FUNDS

The Macedonian capital market got its ninth private investment fund. Thename of the new fund is Euro Ekvity Invest Fond or just - EE Invest Fund, whichis registered as a private fund in the Securities Commission.

The new fund Euro Ekvity Invest Fond has been established for a period ofeight years with a principal of 55,000 euros by the company for management ofinvestment funds - Euro Capital Investment from Skopje. It is a matter of a fund,which would primarily invest in shares and bonds on the Macedonian SecuritiesMarket. At the moment, the company is in the phase of collecting portions fromprivate investors, who mainly are physical entities from Macedonia. Accordingto the law, the minimal property of a private fund should amount half a millioneuros.

Since the start of July up until the end of the year, Macedonia got a total ofnine private investment funds: Fisher Omega, Fisher Alpha, Fisher Delta, FisherGama, Fisher Teta, Nova Investment SEE Invest and Small Investment Fund.


a matter of 460 regular shares, at the amount of230,000 euros. The issue was realized as a pri-vate offer and is purposed for the existing share-holders in the company.

Takeover of Shareholding Companies

The Securities Commission determined thatthe offer of MEGA EL EOOD, Sofia, R. of Bulgariafor the purchase of the shares of the Cable facto-ry Negotino is successful, i.e. that at the open callfor taking over of the factory a total of 204 share-holders applied and offered 25,377 shares, whichrepresent 14.9% of the total number of sharesissued by the company.

***At the twenty-first session held on

24.12.2007, chaired by the president of theSecurities Commission Marina Nakeva-Kavrakova, the SC gave a license to UniversalInvestment Bank JSC Skopje for the share buyback by means of a private offer. It is a matter of1,580 shares with a purchase price of 3,000 de-nars per share, i.e. a total sell value of 4,740,000denars.

***The Securities Commission granted the first

issuing of debt securities of ProCredit Bank ADSkopje. The bank is going to issue 5,000 bondswith a total value of 300,000,000 denars. Theinterest rate will amount 8,4% on an annual level.

The due date of the bonds is three years.Buyer of the first issue of ProCredit Bank ADSkopje is going to be NLB Tutunska Banka ADSkopje. ProCredit Bank AD Skopje issues the

bonds in order to provide financial means, whichwould be placed as credits. This is the first issuingof corporative bonds by a bank in the Republic ofMacedonia.

OPEN INVESTMENT FUNDS

Ilirika Southeast Europe, Ilirika Global Growing Markets and Inovo Status Sharesare the first three investment funds, for which the Securities Commission grantedthe permit to be established. These are open type funds, and citizens as well ascompanies could invest in them. They represent new creators of the securities mar-ket in the Republic of Macedonia.

The open investment funds would be collecting financial means by public callsfor sale of documents for participation in the funds and would invest them in accor-dance with the Law on Investment Funds, the Statute and the Prospect of the fund.This means that by payment of money, each investor would be given a portion,based on which as owner he would be entitled to an appropriate portion of thefund`s profit, and he would be able to ask for his part to be paid by the fund or with-draw from it at any given moment.

In accordance with the data of the funds` prospects, the finances will be invest-ed in:

1. Ilirika Southeast Europe - in securities of companies and banks that oper-ate on the territory of the countries in Southeast Europe;

2. Ilirika Global Growing Markets - on the global and developing markets, aswell as in the Balkans;

3. Inovo Status Shares - in securities of issuers, which main office is situat-ed on the territory of Macedonia, Croatia, Bosnia and Herzegovina, Slovenia, Serbiaand Montenegro.

The abovementioned shows that the Republic of Macedonia is located on theinvestment maps of these three funds. The activity of these funds is expected tocause an increase of the competition amongst the existing banking and financialinstitutions in our country.

Iexpect the current Stock Exchange stagna-tion to end with a trade profit in February ofMarch. Otherwise the Stock Exchange

decline is a result of the following. Now, at theend of the year, in time when the annual bal-ance sheet are made, the investment fundsespecially Slovenian and Croatian which werebig players on Macedonian Stock Exchangeemptied the portfolios in order to show therealized profit. Then in January they will refillit again. Another important reason for theStock Exchange decline in the region was theappearance of some IPOs of the Zagreb StockExchange, who withdraw the assets form theother Stock Exchanges. In 2008 I don`t expectsuch big growth as last year. My estimationsare that in spring the prices of the shares shallincrease for 30%, and until the end of the yearthe contributions shall be around 50%.

It is important to mentions that certaincompanies already achieved the maximum,which on the basis on real information andexpectations for further investments, whileother still don`t have a possibility to increasethe market`s capitalization, says RajaLazarovska, director of the Management ofInvestment Funds Fisher investments thatmanages the sixth private funds: FisherOmega, Fisher Alfa, Fisher Delta, Fisher Teta,Fisher Gamma and Nova Investment. Sheexpects from Macedonian Stock Exchange in2008 to be more stabile. Lazarovska says thatin general considering the stock exchanges`decline, they are satisfied from the work so far.

Ivica Karapetrov, director of theManagement of Investment Funds Mak assetsmanagement, that manages the private fundSEE Invest says that he expects improvement

of the total conditions of the capital market. -Iexpect better financial results of the compa-nies for 2007, in relation to previous year. Theannounced profit tax decrease shall con-tribute towards lower expenses of the compa-nies, which will automatically increase the liq-uidity and will enable to use the increasedassets for investments. Regulatory guillotinewill have an influence on the expenses of thecompanies. Positive influence on the entranceof the foreign investors on the capital marketwill have the expected invitation for NATOmembership. The funds that are yet to openshall contribute towards the increase of thetrade on Macedonian Stock Exchange. I thinkthat 2008 will be more stabile than 2007 and Iexpect average annual proceeds of 30%to40%.

MANAGERS OF THE PRIVATE FUNDS ENVISAGE

A STABILE YEAR WITH AGROWTH OF ABOUT 50%

Positive expectations about the movement of the Macedonian capital market released by the daily news-paper Kapital give Raja Lazarovska, director of the Management of Investment Funds, Fiser investments,which manages with six private funds and Ivica karapetrov, director of the Management of InvestmentFunds, Mak Assets Management, who manages the private fund SEE Invest




1. 4,4 MILLION NEW YEAR SMS MASSAGES SENT (****)2. OKTA PAID OFF, NO ONE IS FOUND GUILTY (***)

03.01.2008 THURSDAY

DNEVNIKp.1 4,4 MILLION NEW YEAR SMS MASSAGES SENTp.1 IT LOOKS LIKE AN AGREEMENT MADE TETE-A-TETEp.4 IT LOOKS LIKE AN AGREEMENT MADE TETE-A-TETEp.4 IF PROVED A CORRUPTION, THE CONTRACT CAN BE TER-

MINATEDp.7 4,4 MILLION NEW YEAR SMS MASSAGES SENTp.8 MBI 03.01.2008

BIZNISp.1 THE STOCKS OF GRANIT MOST TRADED, THE STOCKS OF

ADING WITH THE HIGHEST GROWTHp.1 ON JANUARY 1 THE OPERATORS ENCASH 450,000 EUROS p.2 STOP FOR ABUSE OF PROPERTYp.3 ON JANUARY 1ST THE OPERATORS ENCASH 450,000 EU-

ROSp.3 FOURTH MOBILE OPERATOR- AFTER ALL!p.11 THE STOCKS OF GRANIT MOST TRADED, THE STOCKS OF

ADING WITH THE HIGHEST GROWTHp.11 POSTERIOR NEW YEAR`S SEEDINESS ON THE STOCK EX-

CHANGEp.11 USEFUL ADVICES WHEN USING A PAYMENT CARDSp.11 STOCK EXCHANGE REPORT FOR JANUARY 02, 2008

NIKDJ11UTRINSKI VESNIK

p.1 OKTA`S DISCOUNT PAID BY POSTPONED ECOSTANDARDS p.3 OKTA`S DISCOUNT PAID BY POSTPONEMENT OF ECO-

STANDARDSp.6 MBIp.8 OKTA PAID OFF, NO ONE IS FOUND GUILTY

VECERp.6 SILMAK WORKS AT FULL STRETCHp.6 THREE MILLION SMS MESSAGES SENT

VREMEp.1 SULFUR FOR INTERESTp.3 SULFUR FOR INTERESTp.11 WHAT DOES OKTA SMELL LIKE: OIL OR SULFUR?

VESTp.2 FOREIGN TRUCKS TO PAY FOR UTILIZATION OF ROAD

EXITSp.2 ADOPTED THE DRAFT-LAWS ON INVESTMENT FUNDS AND

CADASTREp.3 THE STOCK EXCHANGE STARTS WITH SLIGHT DECLINE

NOVA MAKEDONIJAp.1 NEW YEAR`S HANGOVER AT THE STOCK EXCHANGEp.3 THREE MILLION GREETINGS BY MOBILE PHONEp.9 NEW YEAR`S HANGOVER AT THE STOCK EXCHANGE - 20.2

MILLION-DENAR TURNOVERSPIC

p.8 THE STATE PAID OKTA 40 MILLION US DOLLARSp.8 COLLECTED 22.5 MILLION EUROS FOR EVN AT THE LAST

MINUTE

The earnings of the New Year`s SMS mes-sages is top news headlines of the day. Everywritten media released the information that themobile operators made profit of 450.000 euros.

According to them T-mobile from midnight to11 o`clock on 1st January recorded 1.7 millionmessages, and at the end of the day they incre-ased to 3.6 million. 580.000 SMS messageswere sent through Cosmofon in the period frommidnight to 3 o`clock on 1st January. VIP record-ed 250.000 sent messages. Or, in other words,the citizens on New Year`s Eve sent about 4.4million SMS messages wishing one anothergood health, happiness and love. By free calcu-lation, they spent around 360.000 euros.

The news about the agreement between theGovernment and OKTA of settling the debt wasin the focus of media attention. The controversypick on Governmental decision about the way ofpayment od the compensation to the refinery.The statement of the Government`s spokesmanIvica Bocevski that the agreement signed by theGovernment and Helenik petroleum shall be

published further in future, raised the suspicionsthat maybe the procedures of settling the debtare unreal or more possible harmful procedures.The agreement about settling the debt is anoth-er agreement face to face between the tradition-al partners for muddy business, VMRO-DPMNEand OKTA, according to Stevco Jakimovski, for-mer minister of economy, in whose mandateOKTA filed the complaint against Macedonia.According to him, the matter that is being agreedand known in public, is that the European fuelstandards application shall be postponed in ayear, and it injured citizens.

- The money that should the state pay as acompensation to OKTA due to breaching theobligations from the company`s purchase agree-ment could be returned in the exchequer, if a cor-ruption is established when signing the agree-ment. This is revealed by the former member ofthe Anti Corruption Commission, DraganMalinovski, a lawyer, invoking on the internation-ally accepted rules.

Vecer convey that the industrial complex

Silmak from Jegunovce despite the informationthat it will be a victim of the liberalization on theelectricity market, still works normally. Thestoves of the factory yesterday were functioning,despite the leadership`s announcement of thecomplex of ferrosilicon saying that if they have toimport electricity, they shall close the company.This has been announced several times toGovernment and MEPSO.

Biznis convey that the first trading day of theStock Exchange is hung-over for the StockExchange. Yesterday as well as the last year, thefirst trading day is only a part of the statisticalchain, which ruins the average, and can bequickly forgotten. Still, the most traded shares onthe Official market were the shares of the com-pany Granit, with 1.290 ordinary shares, while onthe Regular market 400 shares of Arcelormittal(HRM) were traded. The biggest price increaserecorded the shares of Ading of 19.05 per centas well as the shares of Mlaz Bogdanci of 9.84%.

4,4 million New Year SMS massages sent Around 4,4 million SMS massages wishing

for health, joy and love sent the citizens on theNew Year`s Eve. Upon free calculation, theyspent around EUR 360,000.

The officials in the mobile operator T-mobilestated that one million users sent 3,6 millionSMS massages on January 1. It is an increase

by 50 percent in relation to the telephone trafficin other days.

The subscribers to Cosmofon sent 580,000massages until 3 p.m. during the first day in thenew year. In addition, VIP informed that throughtheir network 250,000 SMS wishes were sent.

Okta paid off, no one isfound guiltyThe bill for scandalous purchasing agree-

ment of refinery “OKTA” arrived on the addressof the least guilty – citizens of the Republic ofMacedonia. 40 million American dollars from2007 Central Budget were paid off, funds thatare more than necessary to the economy that ismaking efforts to keep the step with sharp com-petition and businesses that are expected toopen new working posts



1 SILMAK DISCONNECTED, THE EMPLOYEES ON FORCED VACATION (****)2. OKTA WILL DRAIN MACEDONIA FOR A BILLION DOLLARS (***)

04.01.2008 FRIDAY

DNEVNIKp.1 SILMAK DISCONNECTED, THE EMPLOYEES ON FORCED

VACATIONp.5 OPPOSITION BLAMES OF SECOND CORRUPTIVE AGREE-

MENT OF VMRO-DPMNEp.7 SILMAK TURNS OFF THE STOVESp.7 MBI 04.01.2008

BIZNISp.1 COMPLETE LIBERALIZATION IN PURCHASING SECURITIES p.5 COMPLETE LIBERALIZATION IN PURCHASING SECURITIESp.11 MBI 04.01.2008p.11 ACTUATION OF THE SHARES OF GRANIT AND MAKPETROLp.11 NON-TRADING TRANSACTIONSp.11 MBI-10 DECLINES 1.12 PERCENT

UTRINSKI VESNIKp.1 WITHOUT ELECTRICITY THE INDUSTRIAL OVENS OF SIL-

MAK TURNED OFFp.1 OKTA WILL DRAIN MACEDONIA FOR A BILLION DOLLARSp.2 A SERIES OF UNCLEAR MATTERS AFTER THE GOVERN-

MENT`S AGREEMENT WITH OKTAp.3 THE STATE DRIES UP SILMAKp.4 OKTA WILL DRAIN MACEDONIA FOR A BILLION DOLLARSp.7 BLAZO RISTOMANOV, LIVING LEGEND WHICH BUILT UP

BETON

p.9 LUKOIL LIVENS UP MACEDONIAN ENERGY MARKETVECER

p.6 THE EXPENSIVE ELECTRICITY CLOSED DOWN SILMAKp.6 SDSM REQUESTS, THE POWER REFUSES SESSION ON

THE AGREEMENT FOR OKTAVREME

p.DVEST

p.2 OKTA WILL GIVE TEN MILLION EUROS FOR IMPROVING THEQUALITY OF THE GASOLINE

p.3 PAYMENT PROCEDURES FROM SINGLE ACCOUNTp.11 THE GOLD WITH SKY HIGH PRICES

NOVA MAKEDONIJAp.1 THE DAMAGE OF THE AGREEMENT WILL LAST FOR A FEW

YEARSp.4 SILMAK DISCONNECTED FROM ELECTRIC POWER SUPPLYp.6 STOCK EXCHANGE LEANER AND THINNER THAN YESTER-

DAYp.7 THE DAMAGE OF THE AGREEMENT WILL LAST FOR A FEW

YEARSSPIC

p.

The most prevalent news in the daily newspa-pers was the news about the closing of the facto-ry Silmak. Vecher informs that the furnaces of theferrosilicon factory Silmak in Jagunovce stoppedworking since yesterday afternoon because thetransmission system operator MEPSO discon-nected the power supply of the factory. Startingfrom January 1st the factory was supposed to pur-chase the required electricity on the open market,however after this did not happen MEPSOstopped the delivery because the factory is nolonger a tariff consumer.

Utrinski Vesnik adds that starting today all700 employees were sent on a forced vocation,and their future hireling would depend on the out-come of the possible negotiations between therepresentatives of Silmak and MEPSO under thedirect mediation of the Government.

The second hottest topic, but not least impor-tant, which was covered by the daily press, is the

case of OKTA. According to TransparencyMacedonia, in the next ten years the OKTA casewould drain more than a billion dollars fromMacedonia. In the nongovernmental organizationthey are commenting that this is a matter of politi-cal games, because it becomes obvious that boththe Government and the opposition, avoid clear-ing out and processing this major corruption case.

Vest publishes that the price of gold rose atthe highest level ever, 855.10 dollars per ounce,due to the week dollar, the increased process ofthe oil and the geopolitical problems. The gold,which becomes cheaper in the other currencieswhen the dollar weakens, is considered to be thesalvation during times of uncertainty and inflationcaused by the oil.

The news linked to the Stock Exchange isregularly covered by Biznis. They presented thedata for yesterday`s trading at the StockExchange. A total trading at the amount of

32,235,695.00 denars was made on the securitiesmarket, and over 139 transactions were realizedon Thursday. The Official Market realized19,803,399.19 denars in 99 transactions, whilethe remaining 2,149,366.00 denars were realizedat the Regularly Market in 38 transactions. Theshares of Makpetrol - Skopje were traded themost at the Official Market and 30 regular sharesrealized 3,627,611.00 denars through 13 transac-tions. The average price of these shares amount-ed 120,920.37 denars.

Biznis also informs that with the start of 2008a complete liberalization of the purchasing ofsecurities to non-residents of our state is beingmade. With a decision that become effective onthe first this month, the abolishing of the foreigncurrency rights and the other restrictions for port-folio investments in securities in the Republic ofMacedonia…


OKTA will drain Macedonia for a billion dollars

The case OKTA in the forthcomingten years will drain Macedonia for over abillion dollars, published yesterday“Transparency – Macedonia” on thepress conference presenting theDecember report on corruption and crim-inal. The nongovernmental organizationcommented that there are politicalgames in question, because it is becom-ing apparent that the Government andthe opposition however, are avoiding toclarify and to process this huge corrup-tion case.

“A confirmation for this behavior is

the fact that upon the criminal chargefiled by the nongovernmental organiza-tion involving suspicion of breach of dutyby the former Prime Minister LjubcoGjorgievski and others, the PublicProsecutor`s Office has not respondedfor almost four months,” stated thePresident of “Transparency –Macedonia”, Saso Ordanovski. He fur-ther explained that regarding their insis-tence on response, they were informedthat the criminal charge was initially lostand then found, and afterwards that theresponsible prosecutor was on vacation.

Silmak disconnected, theemployees on forced vacation

All stoves in the metallurgical works“Sileks” in Jegunovce since yesterdaymidday are disconnected becauseMacedonian electro-transfer systemoperator disconnected the distribution ofelectricity. All 700 employees are onforced vacation. The administration ofthe factory announced that the employ-ees shall be dismissed if “Silmak”remains inoperative.

We requested MEPSO not to discon-nect electricity until we agree with theGovernment about the electricity supply.“Silmak” is not in a position of buyingelectricity on the free market because itwill not be profitable – stated ZvonkoStojanovski, director of the factory.



1. SKOPJE CITY STADIUM NORTH STAND PULLED DOWN (****)2. NEW TENDER FOR DIGITAL TV BY THE END OF JANUARY (****)

05.01.2008 SATURDAY

DNEVNIK

p.5 OKTA WILL RECEIVE USD 900 MILLION ON THE EXPANSEOF THE CITIZENS

p.9 UEC ASKS PART OF EC`S PROPERTYp.11 MBI 05.01.2008p.11 TENDER FOR DIGITAL TV BROADCASTERp.11 INDUSTRY TO PAY 75 EUROS PER MWH

UTRINSKI VESNIK

p.1 SKOPJE CITY STADIUM NORTH STAND PULLED DOWNp.3 THE GOVERNMENT ANNOUNCED DOCUMENTS ON OKTAp.4 CITIZENS COMPLAIN ON PAYING ACROSS BANKS,

BANKERS CLAIM THERE IS NO PROBLEMp.4 TPP NEGOTINO WORKS WITH FULL CAPACITYp.12 DOMESTIC COMPANIES EXCLUDED FROM TV DIGITALIZA-

TIONp.12 UEC PROPOSES COOPERATION TO ECp.12 MBI 05.01.2008p.30 SKOPJE CITY STADIUM NORTH STAND PULLED DOWN

VECER

p.1 THE NORTH STAND PULLED DOWNp.6 SDSM: OKTA CASE WEIGHS 1.2 MILLIARD DOLLARSp.6 ONE MULTIPLEX FOR MTV, THREE OFFERED THROUGH

TENDER

p.7 NORTH STAND PULLING DOWN STARTS

VREME

p.2 BY 2019 MACEDONIA WILL PLUNGE INTO DARKNESS? p.2 THE GOVERNMENT OFFERED ELECTRICITY FROM TPP

NEGOTINO AND ELEMp.8 WE ARE GOING TO CASH 9.5 MILLION EUROS FROM

OKTA`S IL PIPELINE

VEST

p.8 PULLING DOWN OF THE NORTH STAND STARTSp.8 T-MOBILE REMAINS GOVERNMENT OPERATORp.8 NEW TENDER FOR DIGITAL TV BY THE END OF JANUARY

NOVA MAKEDONIJA

p.2 COMPROMISE SOLUTION, BUT NOT ON BUDGET`S DAM-AGE

p.4 DOCUMENTS ON OKTA ANNOUNCEDp.4 DEFECT DUE TO DAMAGED UNDERGROUND CABLE

SPIC

p.7 PIPELINE WILL BRING OVER 10 MILLION EUROS INFLOWp.7 CHEAPER ELECTRICITY FOR BIG CONSUMERS

The case OKTA is again on the frontpage of newspapers. State`s debt paymenttowards OKTA of 40 million dollars and con-tractual write-off of the residual total 94 mil-lion dollars shocked the public again. Theopposing party doesn`t agree with the man-ner of payment. It accused the Governmentfor harmful agreement according to whichthe refinery is the only one gain profit, but atthe expense of the citizens. Practically, theopposing party interprets on its own way theclauses from the recently signed settlementagreement after the verdict of the ArbitraryCourt of Paris, which the Governmentannounced it on its web site. Anyway, what isquestionable is the concession about theappliance of the new Rulebook on the quali-ty of heating oil and gasoline that has to startfrom 30 July 2009.

Some media transfer the positive side ofthis agreement between the Governmentand Helenik Petroleum according to whichMacedonia will soon acquire 9.5 millioneuros from OKTA`s oil-pipeline on the basisof unsettled dividends. Namely, Macedonia

shall acquire 20% of the shares of Vardaks,accompany that manages with the oil-pipeline Thessaloniki -Skopje. The oil-pipeline of 2002 to 2006 has made profit of49 million euros, of which we are entitled of9.5 million euros dividend….

Dnevnik and Vreme transfer the newsthat Government offers to the major industri-al capacities 1.250 gigawatt electrical energyannually at price of 75 euros for megawatthours. Vice Premier Zoran Stavrevski, afteryesterday`s meeting with the companies`establishment, stated that this price of 10 to20 per cent lower than the agreed price withthe factories of their suppliers on the freemarket.

All media transfer the governmental draftfor allocation of radiofrequencies for threemultiplexes of digital TV transmission. Thethree radiofrequencies will be granted ontender who the Agency for electronic com-munications should announce it until 20January, and Macedonian Television will getone multiplex more from the total ninethrough which the channels of Macedonian

Television shall be transmitted. Also the news for demolishing the North

Stand of the stadium was transferred by allmedia. After being there for 75 years theNorth Stand of the city stadium wasdestroyed. It is anticipated that the terrainshall be cleared in two weeks time, andBeton will start to build a new Stand. TheStand should have its final modern look for18 months and afterwards tender for recon-struction of the East and west Stand shall beannounced.

Utrinski Vesnik transfers the new way ofpayment at the banks. Third day since theLaw on payment operation became effectiveand the citizens are confused and are com-plaining that the payment goes slowly and bycomplex procedures. The systems of somebanks were blocked due to adjustment of thenew legal decisions. The bankers claim thatthe payment operations goes without prob-lems and delays at the clients, althoughslight setback due to news that demands thelegal text that will regulate the payment oper-ations.


SKOPJE CITY STADIUM NORTH STAND PULLED DOWN

THE NORTH STAND After 75years of existing, Skopje City Sta-dium North Stand yesterday becamehistory. Two bulldozers yesterday“hit” the stand that will be pulled to

the ground within two weeks, afterwhich, Beton`s teams are going tostart the construction of the newstand.

NEW TENDER FOR DIGITAL TVBY THE END OF JANUARY

The Government will propose theAgency for Electronic Communica-tions to announce a tender for grant-ing of three multiplexes for transmis-sion of digital TV around 20th thismonth, Minister of Transport andCommunications Mile Janakievski,yesterday informed.


1. SHORT REVIEW IN THE WEEKLY MAGAZINES

31.12.2007-05.01.2008 MONDAY-SATURDAY

GLOBUSp.46 THE CONSTRUCTION COMPANIES WILL BUILD

PROFITS The record growth of the index indicator and of thevalue of the stocks will not repeat in the next year onthe Macedonian stock market, was the prognosis ofthe stock exchange experts. The occurrences on theBelgrade stock exchange will be one of our greatestcompetitors. The potential growth of the price of thereal estate will offer comfort for the traders on theMacedonian stock exchange in 2008 in case of smallprofit, but surely not in case of greater stability of theirinvestments on the capital marketThe annual record participation of the physical enti-ties in 40 percent of the total trade on the Macedonianstock exchange has surprised even it`s management.The citizens could not resist the dizzily growth of thestock prices which brought thereby enormous profits.The experts of the conditions state that this idyll willend soon and that the physical entities should nothope that the stock exchange indicators and thevalue of the stocks will undergo large leaps. Theywarn the citizens to be more careful in 2008 whenthey invest on the stock exchange.

COMING DOWNThe foreign investors on the Macedonian and otherregional stock exchanges anticipate for Globus thatthe standstill existing on our capital market willendure till March 2008. In this period the investorsexpect gradual recovery of the index indicators afterthe fall that occurred on all former Yugoslav stockexchanges.

COMPETITIONOne of the reasons why the Macedonian stockexchange will probably be calmer this year is theprocess of privatization in neighbor Serbia, whichmore and more attracts the interest of the regionaland world investors. In the projections for the forth-coming year the stock exchange analysts as a signif-icant factor have in mind the possibility for listing thePublic Enterprises on the Belgrade stock exchange,which now start the transformation of the capital. Theparticipation of such companies on the Belgradestock exchange will represent a large challenge forthe investment funds in the region.

MEMORIESThe citizens who made a good profit on the stock ex-change and who are planning in 2008, instead of pla-ying lottery, to try their luck again on the Macedonianstock exchange will be very reluctant in terms of ac-cepting the prognosis of more moderate growing mo-vements of the stock exchange index and even moregradual growth of the securities. Understandingly, thememories of 2007 are beautiful. The Macedonianstock exchange was a regional record maker. Theindex of our stock exchange MBI-10, which at the endof 2006 amounted 3.702, during the 2007 recordedaverage constant growth in order to reach it`s maxi-mum of 10.057 percent on August 31.

FORUM

Stock market estimations for 2008This period is a good opportunity to estimate thefuture events connected with the capital market. Arewe going to experience the stress from 2007 thatresulted with the biggest success in history? Just toremind, in 2007 capital market expressed through themovements of the volume and the prices ofMacedonian Stock exchange brought us many dra-matic events, but also a happy end. Although unex-pectedly, in 2007 the general index of Macedonianexchange shares, MBI-10 was increased for exact-ly109% from 3703 to 7741 index points. In 2006 thegrowth was 62%. This is a record accomplishment ona world level for a growth of one stock exchangeindex in 2007. In the meantime, in the second half ofthe year, and especially in the last quarter, the indexunderwent serious decline of the amount of over 30%which resulted with a great anticipation and fear athome investors. A reason for this decline are mixtureof elements starting from the overpriced value ofshares, through the crisis in Kosovo, the scandal withADG Mavrovo, until the decrease of the activity of for-eign investors from Slovenia and Croatia. From theother hand, in 2008 we will collide with different prob-lems. This framework includes the macro-events, aswell those specific events for individual companies.For example, at the beginning of 2008, more precise-ly in the first three months, the situation referring toKosovo will come to a turning point which will bringserious turbulences on the capital market.

Positive trend of the market sharesThe last trade week from 2007 didn`t bring spectacular

changes which honestly haven`t been expectedeither. Generally as Forum has anticipated, the weekmarked the share trade of the creators ofMacedonian stock exchange index who participatedwith 70% of the profit or 104.42 million denars in therealized total profit of 170.3 million denars on theOfficial market. Typical for the last stock exchangeweek is that almost all shares, at least on the Officialmarket, had a slight increase or remained on thesame price margins from last week. Also, there was aconstant increase of the MBI-10 index value.Macedonian stock exchange index recorded growthfor five days, hence the week level increased for4.13%. On the last trade day on Friday (28December) the Stock Exchange ended on 7.740, 79points on the last day of trading (28 December) whichcompared with the previous day represented anincrease of 0.64%. It is interesting to point out thatMBI-10 beside great fluctuations in October, still onthe last day compared with the beginning of the year,i.e. first day of trading from 2007 has increased dou-ble. MBI-10 is the only index having 100% growth inthe region. This is evidence that this year of tradingwas successful.


SECURITIES COMMISSION

NEW BROKERAGES Upon the issuing of working license for the new

brokerages, a total of 23 authorized participants areoperating on the securities market in Republic ofMacedonia

The Securities Commission within the lastyear issued a working license to a number of newparticipants on the securities market. The latestestablished brokerage which acquired a workinglicense is JSC Ideja Plus Broker Radovis. Thisbrokerage is registered with principal in theamount of EUR 75,000 in denar equivalent value,distributed in 75,000 common stocks with a nom-inal value of one euro per stock.

In accordance with Article 94 of the Law onSecurities, this participant on the market shall buyand sell securities upon the order and on theexpense of the client, shall act as mediator duringthe listing and shall have the possibility of provid-ing investment advising services. The Director ofJSC Ideja Plus Broker Radovis will be JankaDimitrova.

A working license issued by the SecuritiesCommission on it`s eighty-four session was alsogranted to JSC Auctor Brokeri Skopje. The prin-cipal of JSC Auctor Brokeri Skopje is in theamount of EUR 150,000 in denar equivalentvalue, distributed in 15,000 common stocks with anominal value of ten euros per stock.

This participant on the market shall buy andsell securities upon the order and on the expenseof the client, shall manage securities portfoliosupon the order and on the expense of the client,

shall act as mediator during the listingand shall have the possibility of providinginvestment advising services.

Working license in the fourth quarterof the last year was granted to JSC BetaBroker Skopje and JSC Dinev BrokerSkopje. These are the two new broker-ages that acquired working licenses bythe Securities Commission on it`s eighty-third session held on September 6, 2007.

The principal of JSC Beta BrokerSkopje is in the amount of EUR 80,000 indenar equivalent value, distributed in10,000 common stocks with a nominalvalue of eight euros per stock.

In accordance with Article 94 of theLaw on Securities, this participant on themarket shall buy and sell securities uponthe order and on the expense of theclient, shall act as mediator during thelisting and shall have the possibility ofproviding investment advising services.

The principal of JSC Dinev BrokerSkopje is in the amount of EUR 75,100 indenar equivalent value, distributed in3,004 common stocks with a nominalvalue of EUR 25 per stock. JSC DinevBroker Skopje is authorized to providethe same services as JSC Beta BrokerSkopje.

The services include the right to buyand sell securities upon the order and onthe expense of the client, to act as medi-ator during the listing and to have the

possibility of providing investmentadvising services. This brokeragewill be directed by Lenin Prculovski.

JSC Publicum Skopje and JSCVIP Skopje are likewise the newbrokerages which acquired workinglicenses by the Securities Commi-ssion during the summer of 2007.

The principal of JSC Publicum Skopje isin the amount of EUR 75,000 in denar equiv-alent value, distributed in 75,000 commonstocks with a nominal value of one euro perstock. This participant also in accordancewith Article 94 of the Law on Securities shallbuy and sell securities on the capital marketupon the order and on the expense of theclient, shall act as mediator during the listingand shall have the possibility of providinginvestment advising services.

JSC VIP Skopje is registered with a prin-cipal in the amount of EUR 500,000 in denarequivalent value, distributed in 50,000 com-mon stocks with a nominal value of ten eurosper stock. This brokerage is authorized toprovide the same services: buying and sell-ing securities on it`s own behalf and on it`sown expense, managing securities portfolioupon the order and on the expense of theindividual client, completing of transactionsand performing activities upon the expenseof the issuer of securities required for suc-

cessful public offer of securities, with or withoutcompulsory buying in unsold securities, acting asmediator during the listing, providing investmentadvising services and completing of transactionsand performing activities on the expense of thirdparties required for acquisition of Joint StockCompany in accordance with the Law on TakingOver Joint Stock Companies. The Director of JSCVIP Skopje will be Gjorgji Ignjatov.

The Securities Commission of Republic ofMacedonia on it`s eighty session held on Maygranted working license to the brokerage JSCSensal Skopje. The principal of this brokerage isin the amount of EUR 75,000 in denar equivalentvalue, distributed in 1,500 common stocks with anominal value of EUR 50 per stock. In accordancewith Article 94 of the Law on Securities, this par-ticipant on the market shall buy and sell securitiesupon the order and on the expense of the client,shall act as mediator during the listing and shallhave the possibility of providing investment advis-ing services.


THE STOCK EXCHANGE WILL FORMJOINT STOCK COMPANIES TOO

From august 2007 Macedonian StockExchange will be include in the process of form-ing new joint companies, companies that will belisted on the Stock Exchange. This practicallymeans that the Stock Exchange may issuesshares that will be listed on the market.

The investor who will buy a part of the shareswill become a shareholder in the company in

which name the Stock Exchange offers theshares. The Stock Exchange has decided to startwith a new product because the analysis hasshown that many Macedonian companies want toopen themselves for new shareholders.

According to the heads of Macedonian StockExchange the investment public is already inter-

ested in, especially at the joint stock companiesas issuers of securities, for this kind of specialauction. On this way the Stock Exchange slowlybecomes a type of barometer of the movement ofthe past and future companies. The investorsresponded very quickly on the publicly releasedinformation.

SUPER LISTINGIn the first months of 2007 Macedonian

Stock Exchange has introduced besides the list-ing market`s super listing. On this list only fourcompanies are listed: Beton, Investbanka,Komercijalna Banka and Toplifikacija

Special conditions for share listing of Superlisting are: In order to enter specific shares in theSuper listing, the issuer must meet the followingconditions: 1.Authencity and objectivity of the

financial reports audited, financial reports for thelast three years. 2. Financial results, achievedprofit in the last three months. 3. Principal or mar-ket capitalization at least 10.000.00 euros,4.Expansibility of the type of the shares in public,at least 20% 5. Number shares at least 200 6.Internet page; the issuer must posses internetpage, on Macedonian and Albanian language.

The expansibility of the at least 20% of the

certain type shares should be under ownership ofat least 200 shareholders. By calculating the per-centage from the above item, the shares that theyown are excluded.: a) members of the manage-ment bodies of the issuer, if they own over 5% ofthe shares, b) more considerable shareholders(individuals or institutional) with over 10% of theshares v) the shares of the Republic of Macedoniaand state institutions, if they own over 10% of theshares.

INDEX OF PUBLICLY LIMITED COMPANIES (MPOC)

From 18.06.20078 Macedonian StockExchange began calculating and releasing thenew index of publicly limited companies- MPOCwith a basic value of 10.000 index points on15.06.2007. Taking into consideration the hetero-geneity of the companies whose shares are trad-ed on the market of the publicly limited companieson Macedonian Stock Exchange, from the aspectof the capital`s volume as well as from the aspectof liquidity in accordance with the methodology ofits calculation., MPOC is price, whose compo-nents are chosen by the Commission on stock-exchange index , taking into consideration the fol-lowing criteria: the number of trading days andrealized profit in the period between two audits ofthe index.

The analyses for the period before introduc-

ing MPOC have shown that the shares of thecompanies which are traded on the public limitedcompanies` market are becoming more interestedfor the investors, especially taking into considera-tion the companies` obligation to inform of theprice sensitive information towards the SecuritiesCommission, in accordance with the Law onSecurities. Hence the information show that dur-ing2007 the trade on the Official market partici-pates with over 73% of the total profit, the trade onthe market of public limited companies partici-pates with significant 21%, while the free marketparticipates with 50%. Hence, taking into consid-eration that MBI10 is an index which relevantlyshows the price movement of the 10 most repre-sentative a, shares on the Official market, wasimposed the need of introducing an index that will

show the price movement of the shares on themarket of public limited companies.

In accordance with the Methodology of indexcalculation of the publicly limited companies,MPCO, the Commission of stock exchange indexestablished that the first elements of MPOC arethe ordinary shares issued from the following jointstock companies: Mittal Steel, Skopje (HRM), ADSkopje, Kjubi Macedonia AD Skopje, OKTA ADSkopje, Stopanska Banka AD Skopje, Prilepbrewery AD Plrilep, Mittal Steel Skopje (CRM), ADSkopje, Makedonski Telekomunacii AD Skopje,ICN-Farm AD Skopje, Beton AD Stip, Metalec ADPrilep, Makedonska Banka AD Skopje,Automakedonija AD Skopje, UNI Banka ADSkopje, Mlaz Bogdanci, and Tutunska banka ADSkopje.

CAPITAL MARKET`S NEWS

Documents

MKIBN20080107-0004E